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The report was a sign of a move away from debt-based spending and additionally showed the UK coming a step closer to becoming a net lender, rather than a borrower.

Sterling is helping the UK erode the large external imbalance that contributed to the currency’s drop after the Brexit vote

AXA analysts

Analysts at AXA said: “The marked improvement in the current account suggests that at these levels sterling is helping the UK erode the large external imbalance that contributed to the currency’s drop after the Brexit vote.

"This should limit downside appetite for the [pound] even as we expect negative headlines from preliminary EU negotiations to mount.”

Today’s main UK news was the manufacturing purchasing manager’s index (PMI) for March, which disappointed forecasts.

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A rise from 54.6 to 55.0 was forecast; but the measure actually dropped to 54.2. While this was a bit of a disappointing result, the gauge remained well above the 50 mark separating growth from contraction and output/new order growth remained above long-term trends.

The GBP/AUD exchange rate was also able to extend its previous gains thanks to disappointing Australian data.

The domestic AiG performance of manufacturing index dropped in March, sliding from 59.3 to 57.5. February’s Australian retail sales also dipped by -0.1 per cent on the month (rather than showing a 0.3 per cent increase in consumer spending).

The Australian Bureau of Statistics reported: “In seasonally adjusted terms, there were falls in clothing, footwear and personal accessory retailing (-2.5 per cent) and household goods retailing (-0.4 per cent).

"These falls were offset by rises in food retailing (0.3 per cent) and department stores (0.8 per cent).